NCDEX Tips For Today: Sell Soy Oil Today

NCDEX Ref. Soy oil has reversed from the long term trend line thus facing strong resistance at 780.7. In yesterday’s session it had formed an inverted hammer candle stick pattern which is a bearish sign in the short term. The high of that candle stick is 777.4 which will also act as a stiff resistance. On the hourly charts it has formed a bearish head and shoulders pattern and it has also broken the neckline support of 767.5. It opened gap down in today’s session thus forming a bearish island reversal on the hourly charts. So, 770 in the near term will also act as a crucial resistance.

The momentum indicator MACD on the daily charts has gone into sell mode showing negative divergence which will add more pressure on the downside.